Indonesia: Manufacturing PMI rises in December
January 2, 2019
Conditions in Indonesia’s manufacturing sector improved at a faster pace in December, according to the Purchasing Managers’ Index (PMI) released by IHS Markit and Nikkei, with the PMI increasing from 50.4 in November to 51.2 in December. As a result, the indicator moved further above the 50-point threshold that seperates expansion from contraction in the manufacturing sector.
December’s uptick came on the back of stronger rises in production and employment, and a recovery in new orders. However, export orders continued to decline. On the price front, both input and output price inflation ebbed, thanks in part to the stronger rupiah.
According to Bernard Aw, Principal Economist at IHS Markit, “Growth in Indonesian manufacturing activity accelerated in December, to signal a positive end to the year. While the quarterly average for the final three months of 2018 was the weakest since the start of the year, other PMI indicators pointed to a brightening outlook for the sector in 2019.”
Author: Oliver Reynolds, Economist